"EPA regulators said that Volkswagen adopted a 'sophisticated' algorithm that turned on vehicles' full emissions controls when it detected they were being tested for emissions performance." - http://www.usatoday.com/story/money/cars/2015/09/18/epa-accu...
And keep in mind that VW is simply the only company who got caught. I find it hard to believe they were the first one or the only ones doing this.
The epa tests are for beaurocrats, now maybe the world is changing but I suspect that if you could simply plug a usb stick in to your car and get better mileage and more power, at the cost of some nitrogen, a ton of people would do it, maybe most would. If it was really important, they'd require the cars to have real time sensors as standard equipment and put some of the responsibility on the driver too. VAG just played along and made the game more efficient. Not that I agree with it, it sucks, but the system was built to be gamed, it's broken
Was isn't this already in place (at least in CA)?
Systems designed to defeat specific test are nothing new. The biggest example I can think of are the Buell (Harley) bikes that use an exhaust bypass designed to keep the bike quite at RPMs used during the CA test.
Such as open doors/hood while the wheels are spinning, no acceleration or a stationary GPS signal.
The fact that cars have GPSs, make it next to impossible to design tests that can't be cheated, you would need a testing rig that could be mounted on a moving car, that didn't cause an increase of pressure on the exhaust system (cars could detect that) And then you would need to do testing on public roads, so the car didn't switch to a different mode when it's GPS showed it was on a known test track.
That's how this was discovered.
Maybe an EE could tell us if it's possible for the ECM to detect the presence of the inductive pickup.
It would enable your car to suddenly perform better as soon as you enter a state with less strict emission requirements, or vice-versa, your usually high emission car would be legal to operate when visiting stricter places because it can switch to a limited more when needed.